Performance

The Paul Hertz Group has brought PRINT® to a variety of global and domestic industries. Among them are restaurant and food service, travel and leisure, appliance and electronics, software, communications and media, health care, retail, consulting, pharmaceutical, risk management and insurance, hotel and hospitality, automotive, home construction, financial services, technology, pharmacy services, and universities.

Significant performance improvements have resulted from PRINT®. Below are performance improvement ranges, followed by concrete example(s) for each performance category.

Top Line Growth

12% increase in annual revenue attributed to PRINT®

A technology driven analytics company touted its “ability to innovate” to distinguish its services from the competition

Unfortunately, a substantial segment of its target market was comprised of PRINTS® who are more comfortable with the status quo than they are with innovation, which they interpret as being new and untested

Once this information was known, the company revamped its sales presentation and positioning, allowing it to beat out major competitors and improve top line growth by 12% in a one year period

A global restaurant corporation improves same store sales 5% while using PRINT®

The marketing team of a global restaurant conglomerate wanted to tap into customer needs more successfully to increase draw

Market research identified that greater “human connection” was needed in their advertising

84% of the marketing team was not naturally “people oriented” • 16% had an intuitive feel for the “emotional/human connection,” but because they were a minority, they did not have a voice

The current advertising campaign was a reflection of the dominant PRINT® bias: emphasis on product features, quality, speed, and efficiency – not the most important touch points for the market they were seeking to reach

As a result of PRINT® working sessions, team diversity was leveraged, the more “people oriented” PRINTS® increased their value, “thinking traps” were identified and eliminated, and advertising focus shifted direction, including signing with a new agency

Same store sales, which had been declining at a rate of 3% per year before the PRINT sessions, increased 2%

PRINT®, which increases employee satisfaction, yields a 2.6% increase in revenue and a 6.7% increase in customer satisfaction

EMPLOYEE SATISFACTION IMPACT ON REVENUE

Employee Satisfaction Improvement – WES

Employee Satisfaction Improvement – MES

Employee Satisfaction Improvement – average

IMPROVEMENT IN FINANCIAL PERFORMANCE

9.9%

41.9%

25.9%

2.6%

EMPLOYEE SATISFACTION IMPACT ON CUSTOMER SATISFACTION

Employee Satisfaction Improvement – WES

Employee Satisfaction Improvement – MES

Employee Satisfaction Improvement – average

INCREASE IN CUSTOMER SATISFACTION

9.9%

41.9%

25.9%

6.7%

The Paul Hertz Group measures Employee Satisfaction in two ways: comparison of baseline and progress Work Environment Survey (WES) data, and comparison of baseline and progress Management Excellence Survey (MES) scores

The Work Environment Survey (validated and used with tens of thousands of employees in hundreds of companies) captures perceptions on: working conditions, training, safety, communication, adequate resources, job expectations, teamwork, organizational structure, compensation, evaluation, benefits, advancement/growth, job security, equal access to employment, and general view of the organization (i.e. given a choice of the same job at another organization, I would still choose to work here)

The Management Excellence Survey (also validated and used with tens of thousands of employees in hundreds of companies) measures perceptions on: adequate and timely communication and information sharing, constructive and timely feedback, proactive problem solving, perceptions about respect, bias toward over-managing and under-managing, decision making style, use of positive reinforcement, and commitment toward improvement and building a successful team

Through PRINT®, Employee Satisfaction increased 9.9%, as measured by the Work Environment Survey, and 41.9%, as measured by the Management Excellence Survey, an average of 25.9%

Studies have proven that a 5% percent increase in employee attitude drives a 1.3 % increase in customer satisfaction and a 0.5 % increase in revenues (Harvard Business Review, January, 1998)

A 25.9% increase in employee attitude associated with PRINT® drives a 5.2% increase in revenue

A 25.9% increase in employee attitude associated with PRINT® drives a 13.5% increase in customer satisfaction

The sales team had the lowest team engagement rating company-wide (60,000 people) before PRINT®, and the highest rating after PRINT®

The sales team also had the lowest profitability rating company-wide before PRINT®, and catapulted to most profitable after PRINT® – a 30% profitability improvement was achieved during the 3-year time period

PRINT® was quickly adopted into other areas of the company as a result

The brand leadership team of a Fortune 50 company invited the leadership team of its largest customer to attend a PRINT® working session

A multibillion-dollar negotiation subsequently took place with the customer

All members of the brand team participated in the negotiation

During negotiation, brand team members were able to play off one another’s strengths, both parties understood who they were negotiating with (triggers/hot buttons and world views were known), ulterior motives were not assumed, tension was diffused, and common language was adopted

100% of the AVAILABLE business was won by the brand team – $2B to top line because they knew how to effectively “get to yes”

These results are in stark contrast with another brand team at the same company who had not yet adopted PRINT®

This team did not PRINT® the customer, the complete brand team was not invited to participate in the negotiation, those present did not communicate effectively with the customer or among themselves, the team was ineffectual at making decisions, and unresolved antagonism permeated the entire negotiation process

There was a huge disconnect: the second brand team believed they would win substantial business, but it turned out that NO business was signed in the second team’s negotiation – a LOST OPPORTUNITY of $600M

The outcome differences with and without PRINT® were dramatic; it was concluded that PRINT® strongly accounted for the difference between success and failure

Investment in PRINT® by the successful brand team – $100,000; ROI – 699

The new longer-term orientation did not come naturally to many of the members of the Leadership Team (predictable, knowing their PRINT®)

The Paul Hertz Group was invited to conduct a PRINT® working session

During the session, strategies were developed to help each PRINT® focus more successfully on the long term – this was not a “one size fits all” approach to the problem

Largely due to what transpired during this special PRINT® working session, and the follow-up work that occurred after the session, the division had their most profitable year, which is especially significant because the company is over 100 years old – “most profitable” was a major accomplishment

In addition to profitability gains, another significant outcome was attributed to PRINT®

The strategies to achieve “Aspirational Thinking & Longer Term Focus” positioned the division as the most attractive partner to a 1000 person technology firm that many of the division’s competitors were seeking to purchase. The division beat out the competition, the tech firm accepted its bid, and the division gained a substantial edge in the homeland security space

The Paul Hertz Group measures Employee Satisfaction in two ways: comparison of baseline and progress Work Environment Survey (WES) data, and comparison of baseline and progress Management Excellence Survey (MES) scores

Through PRINT®, Employee Satisfaction increased 9.9% as measured by the Work Environment Survey, and 41.9% as measured by the Management Excellence Survey, an average of 25.9%

When employee satisfaction is raised 20%, a company boosts its financial performance by more than 42%, according to research conducted by David Maister, a former professor at the Harvard Business School who surveyed more than 5,500 people from 139 offices in 29 firms in 15 countries

When employee satisfaction is raised 25.9% on average, as is the case companies who adopt PRINT®, financial performance improves by 54%

Bottom Line Savings

A VP of a well known manufacturer was ready to cut a sizeable deal with the company’s biggest customer

The natural inclination of the VP (consistent with her PRINT®) would have been to cut and run – making the deal on the spot

Prior to PRINT® sessions, she believed her finance lead took too long to come to “obvious answers,” and decisions would often be made without his input – after learning that his PRINT® necessitated the extra time, she felt better about giving it

Appreciating the finance head’s wisdom and contribution, she allocated 15 minutes for analysis

By waiting a few minutes and valuing PRINT®, the outcome was improved by 15%

$15M on a $100M deal was saved – this went directly to the bottom line

Before PRINT®, the president and VP of HR focused exclusively on skills, qualifications, and attributes to guide hiring, placement, and promotion decisions

More often then they cared to remember, new employees under-performed

After adopting PRINT®, a person’s motivations became the highest weighted factor in recruitment decisions – this turned out to be a much more reliable predictor of success

By knowing PRINT® and a person’s motivations, the VP and president could accurately anticipate how a person would behave in critical situations

$1.125M was saved over a 3-year period by trimming the cost of bad hires (under-performers) and bad fit (putting a person in the wrong job) – this was the direct result of using PRINT® to guide recruitment decisions • As a bonus, retention was improved by 8% after PRINT® was adopted, translating into a $650,000 reduction in turnover costs

A high profile, high impact service was provided by the agency for 15 years

After being promoted, the program manager was replaced by someone who exhibited similar characteristics and strengths – conscientiousness, detail orientation, personable nature, etc.

Within one year of the personnel change, the program imploded and the program budget was in jeopardy – customers were disgruntled

Even though the new program manager possessed many of the same qualifications as her predecessor, her motivations could not have been more different (motivations only known through PRINT®)

The original program manager was motivated to follow the rules and was comfortable with routine tasks (characteristic of her PRINT®)

The new program manager was driven by uniqueness, which made inheriting someone else’s program unworkable. Although she developed a website that enhanced visibility, the uninteresting tasks that made up 95% of the job lacked variety and got her unglued (this would be expected given her PRINT®), so she began ignoring the protocols. This was missed entirely during assignment discussions, as PRINT® had not yet been adopted

After PRINT® was introduced, the situation was understood and the original manager was reassigned to the program

Further customer ill will and internal damage was avoided, and the program’s budget remained intact

Reduction of Shadow Behavior saves between $2M and $27M annually depending on company size

VOLUNTARY TURNOVER

Annual Cost of Voluntary Turnover

50% of Voluntary Turnover is the result of Shadow Behavior

PRINT Reduces Shadow Behavior by:

Annual PRINT® DRIVEN COST SAVINGS PER COMPANY

Firms with 100 to 498 employees

$2,187,293

$1,093,647

55.3%

$604,787

Firms with 500 employees or more

$28,543,703

14,271,852

55.3%

$7,892,334

INVOLUNTARY TURNOVER

Annual Cost of Involuntary Turnover

Employee Satisfaction Improvement – MES

PRINT Reduces Shadow Behavior by:

Annual PRINT® DRIVEN COST SAVINGS PER COMPANY

Firms with 100 to 498 employees

$1,592,920

$1,433,628

55.3%

$792,796

Firms with 500 employees or more

$20,787,262

$18,708,536

55.3%

$10,345,820

MANAGER LOST TIME

Annual Manager Compensation

Employee Satisfaction Improvement – MES

PRINT Reduces Shadow Behavior by:

Annual PRINT® DRIVEN COST SAVINGS PER COMPANY

Firms with 100 to 498 employees

$3,588,000

$1,506,960

55.3%

$833,349

Firms with 500 employees or more

$39,770,140

$16,603,459

55.3%

$9,237,013

TOTAL ANNUAL PRINT® DRIVEN SAVINGS

$40,260 and 299 employees (100 to 499 employee category)

$2,230,932

$47,400 and 3314 employees (500 employee or more category)

$27,475,167

Research studies establish average voluntary turnover at 9.2% per year

Annual compensation and average number of employees (from published US census studies)

Additional research states that executive turnover cost is 400% of total compensation, and non-executive turnover cost is 175% of total compensation (Keep Employees, Inc., 2000)

Voluntary Turnover

50% of voluntary turnover is the result of Shadow Behavior (Dan Dana, Managing Differences, 1999)

PRINT® program reduces Shadow Behavior by 55.3%, as determined by two Paul Hertz Group measures – comparison of baseline and progress Best Self Survey indices, and comparison of baseline and progress Management Excellence Survey scores

90% of involuntary turnover is the result of Shadow Behavior (Dan Dana, Managing Differences, 1999)

PRINT® program reduces Shadow Behavior by 55.3%, as determined by two Paul Hertz Group measures – comparison of baseline and progress Best Self Survey indices, and comparison of baseline and progress Management Excellence Survey scores

Research has established that 42% of a manager’s time is spent addressing Shadow Behavior in the workplace (Watson, C & Hoffman, R; Managers as Negotiators, Leadership Quarterly 7(1), 1996)

PRINT® program reduces Shadow Behavior by 55.3%, as determined by two Paul Hertz Group measures – comparison of baseline and progress Best Self Survey indices, and comparison of baseline and progress Management Excellence Survey scores